Considering the IMF's Perspective on a "Sound Fiscal Policy"
IMF Policy Discussion Papers, July 1, 2002
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- Considering the IMF's Perspective on a "Sound Fiscal Policy"
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Bibliographic details
- Authors: Peter S. Heller
- Published: July 1, 2002
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451971019.003
Overview and purpose
- Provides a perspective on how the IMF assesses a “sound fiscal policy,” focusing principally on industrial and emerging market economies.
- Observes six central criteria used in assessment.
Six central criteria observed
- The short-term fiscal policy stance, with greater emphasis on automatic stabilizers than discretionary fiscal policy.
- Relevance of medium- and sometimes long-term issues.
- Fiscal sustainability.
- Capacity for aggregate fiscal policy implementation (including political economy factors).
- Structural content of fiscal policy (tax efficiency and public expenditure quality).
- Institutional, governance, and process issues associated with budget implementation and revenue collection.
Key analytical observations
- Greater emphasis could be placed on an adequate margin to deal with uncertain long-term challenges.
- Focus is principally on industrial and emerging market economies.
- Emphasis on automatic stabilizers indicates a preference for countercyclical buffers in short-term policy assessment over discretionary measures.
Subject classifications and keywords
- Subject: Expenditure, Fiscal policy, Fiscal stance, Fiscal sustainability, Public debt
- Keywords: country authorities, Fiscal Policy, Fiscal stance, Fiscal sustainability, Global, IMF assessment, IMF consultation mission report, IMF economist, IMF mission, IMF staff, IMF urge government, IMF's perspective, International Monetary Fund, PDP
Content in this bundle
- Considering the IMF's Perspective on a "Sound Fiscal Policy" - PDP/02/8